House File 15
HOUSE FILE
BY HORBACH
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to property taxation of certain lands leased to
2 others by the department of corrections or department of human
3 services and providing for the Act's applicability.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 427.1, subsection 1, Code 2003, is
1 2 amended to read as follows:
1 3 1. FEDERAL AND STATE PROPERTY. The property of the United
1 4 States and this state, including state university, university
1 5 of science and technology, and school lands, except as
1 6 otherwise provided in this subsection. The exemption herein
1 7 provided shall not include any real property subject to
1 8 taxation under any federal statute applicable thereto, but
1 9 such exemption shall extend to and include all machinery and
1 10 equipment owned exclusively by the United States or any
1 11 corporate agency or instrumentality thereof without regard to
1 12 the manner of the affixation of such machinery and equipment
1 13 to the land or building upon or in which such property is
1 14 located, until such time as the Congress of the United States
1 15 shall expressly authorize the taxation of such machinery and
1 16 equipment.
1 17 Sec. 2. Section 427.1, subsection 1, Code 2003, is amended
1 18 by adding the following new unnumbered paragraph:
1 19 NEW UNNUMBERED PARAGRAPH. Property of the state operated
1 20 pursuant to section 904.302, 904.705, or 904.706 that is
1 21 leased to a private individual or corporation shall not be
1 22 exempt from taxation for the term of the lease. Property
1 23 taxes levied against such leased property shall be paid from
1 24 the revolving farm fund created in section 904.706. The
1 25 lessor shall file a copy of the lease with the county assessor
1 26 of the county where the property is located.
1 27 Sec. 3. Section 904.302, Code 2003, is amended by adding
1 28 the following new subsection:
1 29 NEW SUBSECTION. 7A. Pay property taxes levied against
1 30 land leased by the department of corrections or department of
1 31 human services as provided in section 427.1, subsection 1.
1 32 Sec. 4. Section 904.705, unnumbered paragraph 2, Code
1 33 2003, is amended to read as follows:
1 34 The director may with the assistance of the department of
1 35 natural resources establish and operate forestry nurseries on
2 1 state=owned land under the control of the department.
2 2 Residents of the adult correctional institutions shall provide
2 3 the labor for the operation. Nursery stock shall be sold in
2 4 accordance with the rules of the natural resource commission.
2 5 The department shall pay the costs of establishing and
2 6 operating the forestry nurseries out of the revolving farm
2 7 fund created in section 904.706. The department of natural
2 8 resources shall pay the costs of transporting, sorting, and
2 9 distributing nursery stock to and from or on state=owned land
2 10 under the control of the department of natural resources.
2 11 Receipts from the sale of nursery stock produced under this
2 12 section shall be divided between the department and the
2 13 department of natural resources in direct proportion to their
2 14 respective costs as a percentage of the total costs. However,
2 15 if land subject to this section is leased to a private
2 16 individual or corporation, property taxes due and payable on
2 17 the land shall be deducted before receipts of sale are divided
2 18 between the two departments. The department shall deposit its
2 19 receipts in the revolving farm fund created in section
2 20 904.706.
2 21 Sec. 5. APPLICABILITY. This Act applies to leases entered
2 22 into on or after the effective date of this Act.
2 23 EXPLANATION
2 24 This bill provides that nursery land or farmland leased by
2 25 the department of corrections or the department of human
2 26 services to a private individual or corporation is subject to
2 27 property taxation for the term of the lease.
2 28 The bill applies to leases entered into on or after the
2 29 effective date of the bill.
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